An increase in the price of oil will cause which of the following in the medium run?
A) no change in the level of output
B) no change in the price level
C) an increase in the unemployment rate
D) a reduction in the interest rate
E) none of the above
C
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Which of the following hypotheses is a plausible explanation for why U.S. households save so little?
A. Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor. B. Most Americans already own homes and, therefore, have less need for life-cycle saving. C. Government assistance to the elderly has reduced the need for life-cycling saving. D. The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans.
The following are incomes earned but not received by the nation's households, except:
A. Corporate income taxes B. Social security contribution C. Transfer payments D. Undistributed corporate profits
When the Federal Reserve increases its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. higher; shift to the right B. lower; shift to the left C. higher; shift to the left D. lower; shift to the right
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, social welfare equals
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.